found a potential property- need help

7 Replies

so i've found a potential first rental property price is 59k in ga. 

  • Price: $59000
  • Estimated Fair Market Rent: $900
  • Estimated Annual Property Taxes/Fees: $1250
  • Estimated Annual Property Insurance: $980

arvs in the area is 85k-95k. Also the property needs Needs: Siding repair, gutter repair, exterior and interior paint, garage door repair,  flooring, kitchen appliances, other minor repairs.

I have about 6500 cash right now, should i look for HML that may work with me? should i save more before investing?

looking for rental 

i believe its hard money lender.

@Rashad Colton Do you have an estimate of repair costs?

What are your plans after the rehab 

I believe that you need more cash before doing this deal. Most HMLs will want at least 10% of purchase. Plus you also have closing costs which could be as much as $5000-6000 depending on origination fees. On top of that most HMLs also fund renovations on a reimbursement draw, meaning you have to pay the contractor up front (not all reno costs but a percentage to get started) and are reimbursed after the work is completed.

@Rashad Colton

You can try hard money, but you’ll need to shop around because most won’t do less than $100k

You might be better off with finding an investment partner with the cash.

@Rashad Colton It looks like you will have $80K+ in the house when it's all said and done. Based on your comps it's a retail deal. You will need at least $15-20K cash in it to do a brrr. If you do find a HML and then can't get a mortgage to pay the HML off you will loose the house.

I'd say find another deal.

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